Diverse Hedge Funds Remain Strong
Joseph Haslip, Chairman of the NAIC, cites outperformance and strong inflows into the diverse hedge fund space, making it strong relative to the broader private equity industry. He also notes that large pension funds and other allocators embracing hedge funds as a trading strategy rather than an asset class are creating new opportunities for diverse managers.
Outperformance Leading to Greater Allocations
Outperformance has led to increased comfort with investing with diverse managers by union pensions, corporations and endowments, says Joseph Haslip, Chairman of the NAIC. But as public markets have become more constrained, Haslip sees greater allocation towards asset classes like private equity. This could bode well for diverse managers, who are well positioned in those classes to deliver returns to those investors.